PSI EXAM PROPERTY AND
CASUALTY ALL COMPLETE
QUESTIONS AND ANSWERS
All of the following are requirements for determining an area that qualifies for Low Cost
Automobile Insurance EXCEPT - ANSWER --The number of automobile accidents that
occur within the county
What criteria must a person meet in order to be qualified to purchase a good driver discount
policy? - ANSWER --Being licensed to drive a motor vehicle for the previous 3 years and
has not had more than 1 violation point as determined by the CIC
All of the following are authorized activities for the limited lines automobile insurance agents
EXCEPT if the agent - ANSWER --Charges and collects a brokers fee for service
Which of the following descries a contract of reinsurance? - ANSWER --A first insurer
issues insurance to compensate another insurer for losses on contracts issued by that second
insurer
A personal lines licensee is an agent-broker who is able to transact coverage for all the following
EXCEPT - ANSWER --Personal Aircraft
Which of the following must be prominently displayed so that it can be readily inspected on the
licensee? - ANSWER --Currency and capacity
, What is the primary function of the California Automotive Assigned Risk Plan? CARRP -
ANSWER --To put people who have trouble obtaining insurance in touch with insurers
who may be required by law to insure them.
Which is NOT a duty of the Workers Compensation Bureau? - ANSWER --Determine which
claims are approved and which are denied.
When can a person who sells real property require the use of a specific insurance agent, broker
or solicitor? - ANSWER --A buyer is always ale to choose their insurance representative
A "personal lines" agent or broker is allowed to transact what type of insurance coverage? -
ANSWER --Noncommercial automobile and residential property
What is the required rate discount under a good driver discount policy? - ANSWER --20%
below the rate the insured would have been charged otherwise for the same coverage
Which condition is NOT required to be met for a surplus line broker to advise any home state
insured or applicate that coverage has been, or will be obtained from a nonadmitted insurer? -
ANSWER --An annual payment as been received by the insurer?
Who is authorized to adjust or pay claims in excess of an amount determined by the
comissioner? - ANSWER --The managing general agent
In order for an insurer to contract with the state compensation insurance fund it must meet all
of the following criteria EXCEPT - ANSWER --The insurer has met all ration requirements
for risk based capital RBC
CASUALTY ALL COMPLETE
QUESTIONS AND ANSWERS
All of the following are requirements for determining an area that qualifies for Low Cost
Automobile Insurance EXCEPT - ANSWER --The number of automobile accidents that
occur within the county
What criteria must a person meet in order to be qualified to purchase a good driver discount
policy? - ANSWER --Being licensed to drive a motor vehicle for the previous 3 years and
has not had more than 1 violation point as determined by the CIC
All of the following are authorized activities for the limited lines automobile insurance agents
EXCEPT if the agent - ANSWER --Charges and collects a brokers fee for service
Which of the following descries a contract of reinsurance? - ANSWER --A first insurer
issues insurance to compensate another insurer for losses on contracts issued by that second
insurer
A personal lines licensee is an agent-broker who is able to transact coverage for all the following
EXCEPT - ANSWER --Personal Aircraft
Which of the following must be prominently displayed so that it can be readily inspected on the
licensee? - ANSWER --Currency and capacity
, What is the primary function of the California Automotive Assigned Risk Plan? CARRP -
ANSWER --To put people who have trouble obtaining insurance in touch with insurers
who may be required by law to insure them.
Which is NOT a duty of the Workers Compensation Bureau? - ANSWER --Determine which
claims are approved and which are denied.
When can a person who sells real property require the use of a specific insurance agent, broker
or solicitor? - ANSWER --A buyer is always ale to choose their insurance representative
A "personal lines" agent or broker is allowed to transact what type of insurance coverage? -
ANSWER --Noncommercial automobile and residential property
What is the required rate discount under a good driver discount policy? - ANSWER --20%
below the rate the insured would have been charged otherwise for the same coverage
Which condition is NOT required to be met for a surplus line broker to advise any home state
insured or applicate that coverage has been, or will be obtained from a nonadmitted insurer? -
ANSWER --An annual payment as been received by the insurer?
Who is authorized to adjust or pay claims in excess of an amount determined by the
comissioner? - ANSWER --The managing general agent
In order for an insurer to contract with the state compensation insurance fund it must meet all
of the following criteria EXCEPT - ANSWER --The insurer has met all ration requirements
for risk based capital RBC
